Senators in Nebraska have voted for laws that would allow state banks to promote cryptocurrency transactions like those allowed in Wyoming.
State laws can often be independent or even contrary to federal laws under the 10th Amendment to the United States Constitution. In the crypto space, exchanges like Binance US have to go from state to state to legally make their services available to US citizens. Banks chartered nationwide are expected to offer cryptocurrency custody services, according to the Office of the Currency Auditor.
Senator favors for cryptocurrency services
Senator Flood said he passed laws after meeting a friend who wanted to join the Wyoming cryptocurrency industry. According to Flood, the law gives Nebraska an early chance to take advantage of cryptocurrency, which will help the state capitalize on technology and fund jobs. He also stated that this was a once in a lifetime opportunity not just for my district but for the entire state of Nebraska.
The state of Wyoming set up the first cryptocurrency exchange in September 2020 and was the first to do so. According to reports, Nebraska would be the second state in the country to introduce a formal charter for cryptocurrency banks that would allow them to facilitate cryptocurrency transactions. The bill passed the first of three required votes in lawmakers on Sunday. 39 senators voted to submit the bill for registration and initial review.
Bill 649, introduced in January by Republican Mike Flood, aims to implement the step of financial innovation in Nebraska and create custodians for digital assets, as well as their charter, service, supervision and regulation.
Some lawmakers raised concerns about the consequences of the measure and asked if the state could enter the crypto market. Senator Steve Erdman reportedly said this bill is nowhere near the form in which it will be passed.
Nebraska lawmakers are still working on a bill to empower state banks to provide cryptocurrency services, and Nebraska is developing a bill to encourage banks to provide cryptocurrency services.